Export Incentive

This query is : Open

Santosh Shetty (Querist)
Follow

03 October 2009 Dear Sir,

Basically we are into ready made garment exports. Now my question is, we have made export shipment of USD 350000/- to a particular buyer in FY 2008-09 & all the payments have been relised in full for the same. Now the buyer is asking for the discount of USD $23000/-. While we approached our bank for TT Payment, they are asking us to surrender the proportionate drawback amt. I understand that if the discount amt is below 10% we need not surrender the export incentive. So I request you kindly advice in this matter.

Thanking you in advance,

Santosh

Rajeev

Rajeev (Expert)
Follow

05 October 2009 Yes you are right santosh , but discount is always adjusted in invoice in fob value, otherwise it can be deemed that you have overinvoiced the sales bill to claim government benefit . Its not a usual case when u receive forex and then remit back in the nature of discount.
You are not supposed to surrender if the amount received is 90% , but when u receive 100% and want to remit 10% back , i think an issue may be created.

Santosh Shetty

Santosh Shetty (Querist)
Follow

06 October 2009 Thank you very much sir.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now